[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) DraftKings reported a **20% year-over-year revenue increase to $1.41 billion** for Q1 2025, driven by customer engagement and the Jackpocket acquisition, with **3.7 million shares repurchased** Revenue Performance | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,409 million | $1,175 million | +$234 million | +20% | - Key growth drivers included healthy customer engagement, efficient customer acquisition, higher structural Sportsbook hold, and the acquisition of Jackpocket[3](index=3&type=chunk) - The CEO noted that without customer-friendly sports outcomes in March, the company would have raised its fiscal year 2025 guidance[4](index=4&type=chunk) - The company repurchased **3.7 million shares** in the first quarter under its existing stock repurchase program[4](index=4&type=chunk) [Fiscal Year 2025 Guidance](index=1&type=section&id=Fiscal%20Year%202025%20Guidance) The company revised its fiscal year 2025 guidance downwards, projecting revenue between **$6.2 billion and $6.4 billion** and Adjusted EBITDA between **$800 million and $900 million**, excluding Missouri launch impact Revised Fiscal Year 2025 Guidance | Guidance Metric | Previous FY2025 Guidance | Revised FY2025 Guidance | | :--- | :--- | :--- | | Revenue | $6.3B - $6.6B | $6.2B - $6.4B | | Adjusted EBITDA | $900M - $1.0B | $800M - $900M | - The revised revenue guidance equates to approximately **32% year-over-year growth** at the midpoint[8](index=8&type=chunk) - The current guidance for fiscal year 2025 does not include the impact of a potential mobile sports betting launch in Missouri[8](index=8&type=chunk) [Operational Metrics and Market Footprint](index=1&type=section&id=Operational%20Metrics%20and%20Market%20Footprint) Monthly Unique Payers (MUPs) grew **28% to 4.3 million** (11% organically), while Average Revenue per MUP (ARPMUP) decreased **5% to $108** (7% organically), with the company live in **25 states** for mobile sports betting Key Operational Metrics | Metric | Q1 2025 | YoY Change (Reported) | YoY Change (Ex-Jackpocket) | | :--- | :--- | :--- | :--- | | Monthly Unique Payers (MUPs) | 4.3 million | +28% | +11% | | Average Revenue per MUP (ARPMUP) | $108 | -5% | +7% | - DraftKings is live with mobile sports betting in **25 states** and Washington, D.C., covering approximately **49% of the U.S. population**[7](index=7&type=chunk) - The company is live with iGaming in **5 states**, representing about **11% of the U.S. population**[11](index=11&type=chunk) - Following voter approval in Missouri, DraftKings expects to launch its Sportsbook product in the state, pending necessary approvals[11](index=11&type=chunk) [Financial Statements](index=2&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue grew to **$1.41 billion**, with loss from operations significantly narrowed to **$(46.3) million** and net loss per share reduced to **$(0.07)** Consolidated Statements of Operations | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $1,408,806 | $1,174,996 | | Loss from operations | $(46,331) | $(138,838) | | Net loss attributable to common stockholders | $(33,864) | $(142,568) | | Loss per share (Basic and diluted) | $(0.07) | $(0.30) | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached **$4.52 billion**, with cash and cash equivalents at **$1.12 billion**, and total liabilities increasing to **$3.64 billion** due to a new Term B Loan Consolidated Balance Sheets | (In thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,119,740 | $788,287 | | Total assets | $4,515,813 | $4,283,725 | | Total liabilities | $3,642,898 | $3,273,099 | | Total stockholders' equity | $872,915 | $1,010,626 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2025, net cash used in operating activities was **$(119.0) million**, while financing activities generated **$372.8 million** primarily from a new Term B Loan Consolidated Statements of Cash Flows | (In thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(119,016) | $(70,395) | | Net cash provided by (used in) investing activities | $(39,019) | $(39,199) | | Net cash provided by (used in) financing activities | $372,823 | $(30,642) | [Revenue Disaggregation](index=4&type=section&id=Revenue%20Disaggregation) Sportsbook revenue grew **20.1% to $882.0 million**, iGaming revenue increased **14.5% to $423.5 million**, and Other Revenue surged **45.7% to $103.4 million** Revenue by Segment | (In thousands) | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Sportsbook Revenue | $881,957 | $734,055 | 20.1% | | iGaming Revenue | $423,471 | $369,997 | 14.5% | | Other Revenue | $103,378 | $70,944 | 45.7% | | **Total Revenue** | **$1,408,806** | **$1,174,996** | **19.9%** | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) DraftKings uses Adjusted EBITDA and Adjusted EPS as key non-GAAP metrics to assess core operational performance, providing reconciliations to GAAP equivalents - The company uses Adjusted EBITDA and Adjusted Earnings (Loss) Per Share to evaluate operating performance, similar to its U.S. competitors[23](index=23&type=chunk) - Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, D&A, stock-based compensation, transaction costs, and other non-recurring items[24](index=24&type=chunk) - Adjusted EPS is defined as basic EPS adjusted for amortization of acquired intangibles, stock-based compensation, and other non-recurring items[25](index=25&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q1 2025 significantly increased to **$102.6 million** from **$22.4 million** in Q1 2024, primarily by adjusting for stock-based compensation and D&A Reconciliation of Net Loss to Adjusted EBITDA | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(33,864) | $(142,568) | | Stock-based compensation | $78,846 | $93,535 | | Depreciation and amortization | $70,116 | $53,180 | | **Adjusted EBITDA** | **$102,630** | **$22,390** | [Reconciliation of EPS to Adjusted EPS](index=8&type=section&id=Reconciliation%20of%20EPS%20to%20Adjusted%20EPS) Adjusted Earnings Per Share improved to **$0.12** in Q1 2025 from **$0.03** in Q1 2024, adjusting GAAP basic loss per share for stock-based compensation and amortization Reconciliation of EPS to Adjusted EPS | Per Share Data | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Basic earnings (loss) per share | $(0.07) | $(0.30) | | Stock-based compensation | $0.16 | $0.20 | | Amortization of acquired intangible assets | $0.09 | $0.06 | | **Adjusted Earnings (Loss) Per Share** | **$0.12** | **$0.03** |

Q1 2025 EARNINGS PRESENTATION May 8, 2025 | 1 Legal Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about DraftKings Inc. ("DraftKings", the "Company", "we", "us" and "our") and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, cont ...

DraftKings (DKNG) came out with quarterly earnings of $0.12 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to loss of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -33.33%. A quarter ago, it was expected that this company would post a loss of $0.19 per share when it actually produced a loss of $0.28, delivering a surprise of -47.37%.Over the last four quarters, the company has surpass ...

Core Insights - DraftKings reported first-quarter revenue of $1.41 billion, a 20% increase year-over-year, but fell short of the consensus estimate of $1.44 billion [1] - The company reported earnings per share of 12 cents, missing the consensus estimate of 22 cents per share [1] Revenue Growth Drivers - Revenue growth was attributed to strong customer engagement, new customer acquisition, a higher structural sportsbook hold percentage, and the impact of the Jackpocket acquisition [2] - Monthly Unique Payers (MUPs) increased by 28% to 4.3 million, driven by strong retention and acquisition, as well as the Jackpocket acquisition [2] - Excluding the Jackpocket acquisition, MUPs would have increased by 11% year-over-year [2] Average Revenue Metrics - Average revenue per MUP was $108, down 5% year-over-year, primarily due to the inclusion of Jackpocket customers [3] - Without the Jackpocket acquisition, average revenue per MUP would have increased by 7% year-over-year [3] Market Presence - DraftKings operates mobile sports betting in 25 states and Washington D.C., with iGaming available in five states [4] - The company is also active in Ontario, Canada, covering 40% of the country's population [4] Future Guidance - DraftKings plans to launch its sportsbook in Missouri pending approvals, with the state legalizing sports betting in November 2024 [5] - The company revised its full-year revenue guidance down to a range of $6.2 billion to $6.4 billion from a previous range of $6.3 billion to $6.6 billion [5] - Full-year adjusted EBITDA guidance was also lowered to a range of $800 million to $900 million from $900 million to $1.0 billion [6] Stock Performance - DraftKings stock rose by 3.9% to $36.74 in after-hours trading, within a 52-week trading range of $28.69 to $53.61 [7]

Group 1 - The company's stock price fell by 3.1% in after-hours trading [1] - The company's Q1 revenue was reported at $1.41 billion, which was below analysts' expectations of $1.46 billion [2] - The company revised its full-year revenue guidance to a range of $6.2 billion to $6.4 billion, down from the previous estimate of $6.3 billion to $6.6 billion [3]

Core Insights - DraftKings reported first quarter 2025 revenue of $1,409 million, a 20% increase from $1,175 million in the same period of 2024, driven by strong customer engagement and the acquisition of Jackpocket Inc. [2][3][35] - Monthly Unique Payers (MUPs) rose to 4.3 million, reflecting a 28% increase year-over-year, with a 5% decrease in Average Revenue per MUP (ARPMUP) to $108, primarily due to the impact of Jackpocket customers [7][14][15] - The company revised its fiscal year 2025 revenue guidance to a range of $6.2 billion to $6.4 billion, down from a previous range of $6.3 billion to $6.6 billion, indicating approximately 32% year-over-year growth [5][7][10] Financial Performance - DraftKings' net loss for the first quarter of 2025 was $33.9 million, an improvement from a loss of $142.6 million in the same quarter of 2024 [14][15] - Adjusted EBITDA for the first quarter of 2025 was $102.6 million, significantly up from $22.4 million in the prior year [15][26] - The company repurchased 3.7 million shares in the first quarter under its stock repurchase program, indicating a commitment to returning value to shareholders [3][35] Market Position and Growth - DraftKings operates mobile sports betting in 25 states and Washington, D.C., covering approximately 49% of the U.S. population, and iGaming in 5 states, representing about 11% of the U.S. population [7][35] - The acquisition of Jackpocket is expected to enhance customer retention and acquisition across DraftKings' offerings [2][7] - The company is preparing to launch its Sportsbook product in Missouri, pending regulatory approvals, following the legalization of sports betting in the state [7][35]

Core Viewpoint - The market anticipates DraftKings (DKNG) will report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - DraftKings is expected to post quarterly earnings of $0.18 per share, reflecting a year-over-year increase of +160% [3]. - Revenues are projected to reach $1.42 billion, representing a 21.1% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 24.36% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [8]. Historical Performance - DraftKings has only beaten consensus EPS estimates once in the last four quarters, with a notable surprise of -47.37% in the last reported quarter [12][13]. Conclusion - DraftKings does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article emphasizes that it is a personal opinion and not a recommendation for stock purchases or sales [2] - It highlights the importance of conducting individual research before making investment decisions [2]

Company Performance - DraftKings (DKNG) ended the latest trading session at $34.18, reflecting a +0.38% adjustment from the previous day's close, while trailing the S&P 500's daily gain of 2.03% [1] - Over the past month, DraftKings shares have decreased by 9.63%, underperforming the Consumer Discretionary sector's loss of 4.94% and the S&P 500's loss of 5.07% [1] Upcoming Earnings - DraftKings is set to disclose its earnings on May 8, 2025, with analysts expecting earnings of $0.18 per share, indicating a year-over-year growth of 160% [2] - The consensus estimate for revenue is projected at $1.45 billion, representing a 23.73% growth compared to the same quarter of the previous year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $1.65 per share and revenue of $6.4 billion, reflecting changes of +257.14% and +34.2% respectively from the prior year [3] - Recent changes to analyst estimates for DraftKings indicate a positive outlook for the company's business trends [3] Valuation Metrics - DraftKings currently has a Forward P/E ratio of 20.7, which is a premium compared to the industry's average Forward P/E of 16.52 [5] - The company has a PEG ratio of 0.38, significantly lower than the Gaming industry's average PEG ratio of 1.26 [6] Industry Context - The Gaming industry, part of the Consumer Discretionary sector, holds a Zacks Industry Rank of 153, placing it in the bottom 39% of over 250 industries [6] - The Zacks Industry Rank measures the strength of individual industry groups, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - BofA analyst Shaun C. Kelley reiterated a Buy rating on DraftKings Inc. (DKNG) with a price forecast of $60.00 [1] - DraftKings is expected to face scrutiny on its 2025 guidance and betting volume momentum ahead of its first-quarter earnings report scheduled for May 8 [1] - The first-quarter EBITDA projections have been reduced to $120 million from $149 million due to lower hold during March Madness [1] Group 2 - The full-year outlook remains intact, supported by a strong Super Bowl performance, but a ban on Texas Jackpocket could pose a $30 million EBITDA risk [2] - Market-wide same-state sports betting handle growth slowed to 9% year-over-year in Q1 2025, down from 11% in Q4 and 23% in Q3 [3] - The deceleration in growth and the rise of prediction markets have created uncertainty around DraftKings' forecast for mid-to-high teens growth [3] Group 3 - DraftKings' 2025 EBITDA forecast of $900 million to $1 billion currently excludes potential impacts from Missouri's sports betting rollout, possible state tax hikes, and the recent shutdown of Jackpocket in Texas [4] - The company might revise its revenue and EBITDA guidance downward by $50 million and $30 million, respectively, due to the Jackpocket situation [4] - New taxes in states like New Jersey, Maryland, and North Carolina could pose a $60 million challenge, while Missouri's delayed launch may add $35 million [5] Group 4 - DKNG shares closed higher by 3.18% to $33.47 on Tuesday [5]